Subam Papers IPO Review
Neutral144-152 · SME
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Analyst Verdict
Subam Papers IPO
Neutral
IPO at a Glance
Price Band
144-152
Issue Size
94cr
Min. Investment
₹1,21,600
Opens
2024-09-28
Closes
2024-10-01
Listing
2024-10-06
Category
SME
Key Strengths
✓The company recycles paper waste and provides sustainable packaging solutions. By opting to recycle one ton of paper, It collectively saves the equivalent of 17 trees, conserving precious forests and promoting biodiversity. Furthermore, conserving 7,000 gallons of water and sparing 380 gallons of oil highlights the resource efficiency achieved through recycling.
✓The company has invested in water pumping stations and connecting fully operational pipelines, ensuring efficient water distribution throughout the facility. Moreover, THe factory’s strategic location offers a distinct advantage, with the Thamirabarani River situated within a mere 6 km proximity.
✓Subam’s unique advantage of producing a wide range of paper grades all on one campus creates substantial demand in the market for its products.
✓It operates on a robust B2B business model, catering to a vast network of over 1200 customers over the past two decades. The business strategy mitigates credit risks by ensuring that no single customer accounts for more than 5% of its total sales.
Key Risks
⚠Wastepaper is the primary raw material for its manufacturing process, and its non-availability or price increases can significantly impact the financial performance. In the financial year 2022-2023, The company’s performance was severely affected due to raw material shortages.
⚠The company conducts its business activities on a purchase-order basis and has not entered into long-term agreements with its customers.
⚠It is exposed to counterparty credit risk and any delay in receiving payments or non-receipt of payments may adversely impact the results of operations.
⚠It generates a major portion of sales in certain geographical regions, especially Tamil Nadu. Any adverse developments affecting the operations in these regions could adversely impact the business.
Frequently Asked Questions
Should I apply for Subam Papers IPO?
Based on our analysis, our rating for Subam Papers IPO is: Neutral. Review the full analysis including strengths, risks, and financials on CheckIPO before making a decision.
What are the key risks of Subam Papers IPO?
Wastepaper is the primary raw material for its manufacturing process, and its non-availability or price increases can significantly impact the financial performance. In the financial year 2022-2023, The company’s performance was severely affected due to raw material shortages. The company conducts its business activities on a purchase-order basis and has not entered into long-term agreements with
What are the strengths of Subam Papers IPO?
The company recycles paper waste and provides sustainable packaging solutions. By opting to recycle one ton of paper, It collectively saves the equivalent of 17 trees, conserving precious forests and promoting biodiversity. Furthermore, conserving 7,000 gallons of water and sparing 380 gallons of oil highlights the resource efficiency achieved through recycling. The company has invested in water p
What is the price band of Subam Papers IPO?
The price band for Subam Papers IPO is 144-152. The IPO has closed.
Full Analysis Available
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